Both Curtis Flooring and Keller Roofing have estimated their uncollectible accounts at 12/31/22 to be $14,000. In addition, both companies use the allowance method for uncollectible accounts. If Curtis currently has a debit balance in Allowance for Doubtful Accounts and Keller Roofing has a credit balance in Allowance for Doubtful Accounts, will need to record a larger adjusting entry for their Allowance for Doubtful Accounts account.

Curtis flooring would have a larger adjusting entry in their allowance for doubtful accounts.

Explanation:

Allowance for for doubtful accounts is normally a credit balance account ,which implies that any entity with closing credit balance in allowance for doubtful debt is expected to deduct the current period estimated uncollectible accounts from the opening balance in order to arrive at the adjusting entry.

On other hand, an entity with a closing debit balance would add the debit balance to the new estimated uncollectible account amount,which implies that this company would have a higher adjusting entry in their allowance for doubtful accounts,this is the case for Curtis Flooring

a loan? that’s my guess, anywho.